China's National Development and Reform Commission (NDRC) has ordered local authorities to investigate the pricing of staple food products, according to state media. The move came after recent high-profile price increases of food products were widely reported in China and overseas. The investigations will cover grain, edible vegetable oil, pork, beef, mutton, and poultry, as concern grows that rising prices will detrimentally affect China's majority rural population.
The NDRC said that some industry associations "have initiated united pricing hikes among member companies, while some firms raised prices by hoarding or fabricating rumours, severely upsetting the market and threatening social stability." It has ordered local pricing authorities to scrap or slash illegal high administrative levies on food producers, transporters and sellers.
Food inflation in China is becoming a major political issue as demand for certain staple products outstrips supply. In June, China's consumer price index officially hit a 33-month-high of 4.4 per cent, mainly driven by food price rises.
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